<p>I was wondering if anyone is aware of a 529 plan where there is little risk to the principle balance. I recognize the returns will not be favorable but I want the tax advantage associated with these programs. Any help would be appreciated. Daughter has three years left in HS so there is no time to recoup any losses if we have a repeat performance of the recent market crash.</p>
<p>Thx in advance.</p>
<p>Most 529 administrators will offer an option of 100% money market funds. There is little risk of losing any of the principal. On the other hand, there probably won’t be much gain over the 6 years that the fund is invested (3 years in high school + 3 more years in college, assuming you don’t withdraw the balance in year 1 of college). If interest rates zoom then this could be an effective strategy. You can always change your asset allocation once a year if you’re not happy with the returns.</p>
<p>Here’s an example from Fidelity:</p>
<p>[Fidelity</a> Investments](<a href=“529 Plans - College Savings Plans - Fidelity”>529 Plans - College Savings Plans - Fidelity)</p>
<p>Agree, I’ve never seen one without at least one stable investment option. As a side note, check to see if your state offers a plan first as these often come with state tax deduction benefits.</p>